EyePoint Pharma Offloads Its Commercially-Available Eye Implant For $82.5M Plus Royalties
EyePoint Pharmaceuticals Inc (NASDAQ: EYPT) has agreed to sell Yutiq (fluocinolone acetonide intravitreal implant) 0.18mg to Alimera Sciences Inc (NASDAQ: ALIM).
Yutiq is a treatment for chronic non-infectious uveitis affecting the posterior segment of the eye. The FDA approved the treatment in October 2018.
What Happened: Alimera will receive global rights to Yutiq outside of China, Hong Kong, Taiwan, Macau, and Southeast Asia, where Yutiq is exclusively licensed to Ocumension Therapeutics, and EyePoint will continue to receive royalties from Ocumension for its Yutiq sales.
EyePoint received a $75 million up-front cash payment and will receive an additional $7.5 million in equal quarterly installments in 2024.
In addition, commencing in 2025, EyePoint will receive a low to mid-double-digit royalty on Alimera’s related U.S. net sales above defined thresholds for the calendar years 2025-2028.
Why It Matters: In Q1 FY23, product revenue for Yutiq was $7.4 million, up 60% Y/Y, with a customer demand of approximately 930 units, up 43% Y/Y.
“This transaction completes EyePoint’s transformation into a pure play drug development company focused on advancing and expanding a pipeline of sustained delivery treatments for serious eye diseases,” said Nancy Lurker, CEO of EyePoint.
“This value-creating transaction has enabled EyePoint to pay off all outstanding bank debt at closing, reduce our projected SG&A spending and extend our cash runway into 2025 as we prepare for the potential Phase 3 pivotal trials for EYP-1901,” Lurker added.
The company says it is well-capitalized beyond key EYP-1901 Phase 2 DAVIO 2 and PAVIA clinical trial inflection points.
Price Action: EYPT shares closed at $6.41, and ALIM shares closed at $2.06 on Wednesday.
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